MEMR approves acquisition of Newmont by Medco

The Ministry of Energy and Mineral Resources (MEMR) has finally given its approval to a recent deal for IDX-listed energy company PT Medco Energi Internasional Tbk to acquire gold and copper giant PT Newmont Nusa Tenggara (NNT), Kontan reported on Monday.

Director General of Mineral and Coal at the ministry Bambang Gatot Ariyono was quoted by the paper as saying that Medco has met all administrative requirements to become the new shareholder in NNT.

In June of this year, Medco signed a binding share sale and purchase agreement with PT Amman Mineral Internasional (AMI) for the former to acquire 82.2 percent shares in NNT from the latter. The deal followed an agreement made by AMI to acquire the shares of NNT from Newmont Mining Corp, Sumitomo Corp, and PT Multi Daerah Bersaing (MDB).

Elsewhere, Bambang said that Medco holds the top priority in acquiring another 7 percent stake to be divested by NNT, which operates the Batu Hijau mine in Lomok, West Nusa Tenggara Province.

Meanwhile, Medco President Commissioner M. Lutfi said that after obtaining approval from the ministry, the company will report the Financial Services Authority, and then hold a shareholders meeting within the next 45 days. (*)